Unfair Terms in Consumer Contracts
The Unfair Terms in Consumer Contracts Regulations (UTCCRs) protect consumers against unfair standard terms in contracts they make with traders. The OFT and other approved bodies can take legal action to prevent the use of such terms.
In general, companies are free to use whatever contractual terms and conditions they consider reasonable. Companies must ensure that these terms and conditions are not unfair. An unfair term is defined as one which, contrary to the requirements of good faith, causes a significant imbalance in the parties’ rights and obligations under the contract to the detriment of the consumer.
The OFT can act to stop the terms it considers unfair, if necessary seeking an injunction through the courts.
Related links
Law Commission: report on unfair contract terms
Report response letter to the Law Commission
Scottish Law Commission
Report response letter to the Scottish Law Commission
